Previous literature has concentrated mainly on the voluntary adoption effect of IAS/IFRS by German companies on earnings
management (Barth, Landsman, & Lang, 2008; Van Tendeloo & Vanstraelen, 2005). However, there is little research
examining the mandatory adoption effect of IAS/IFRS on earnings management in French companies. We concentrate on
France because, in contrast to Germany, it is an IAS/IFRS first-time adopter. This allows us to avoid the sample selection bias
of prior studies on voluntary adoption of IAS/IFRS. In addition, France is a code-law country, with low investor protection
rights and high magnitude of earnings management (Leuz et al., 2003).